How to offset tax liability using ITC of capital goods?

This discussion addresses how to manage Input Tax Credit (ITC) for capital goods used for both taxable and exempt supplies. It explains the need to reverse a portion of the ITC monthly, proportional to exempt turnover, as per Rule 43 of the CGST Rules 2017. The advice clarifies that this reversal should be shown in Table 4(B)(1) of GSTR3B, and addresses the system's prompt to use full capital ITC during tax liability offset, advising adherence to the 60-month utilisation period.